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Saturday, March 2, 2013

Bernie Madoff, Marc Faber, Jim Rogers, Peter Schiff, Eric Sprott

Investors' Insights:
Week Ending March 2, 2013

"Investors' Insights"

Now this video gives us a little insight into why he is carrying so much Gold in his own portfolio -25%. So now, you can see why he is so eager to have us buy more and protect his position. Otherwise, if we do the opposite and sell all our holdings - then our poor Mr. Faber faces unkind losses and embarrassment. All this could also lead to a career change for our dearest unbiased advisor.

By the way, will you tell us Marc when you decide to sell or reduce this position before you actually do? Hmm...

Madoff get back in the cage -

First Financial Insights
March 1, 2013 

Believe me, I told you 25% is in Gold

Home Sweet Home

 Video Summary: The real state of the US economy; Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is t...

Here's Peter at his finest. Now let's do a straw poll here, does he make any sense? You're right he doesn't, as like most in this sales practice filled charlatans, they focus primarily on short-term abstracts and situations. Never do we get to the real problems causing the bloated debt, climatic chaos and financial tipping point.

Consider this,within the next ten years there will be less food, water, energy, and minerals, but more gold, pollution and people demanding more of the less food, water, energy, and minerals.And with each subsequent ten year period it will get much worse, until we actually run out of almost everything.

Beam  me up Scotty...

First Financial Insights
February 28, 2013

Peter, thanks for your thoughts and advice.

Not really by design, but this week the two themes at "Investors' Insights" are quite similar, even in spelling: God and Gold. They both promise miracles and value forever. These assertions are not subject to object tests of quantum information, and thus fail to meet the burdens of proof needed to judge their on-going existence as scientific truths.You are, thus, left to your own speculative devices.

Peter is absolutely correct in pointing out that gold is not insurance against systemic risk - we believe any educated mind can easily understand the mathematical and physical reasons fairly quickly. However, it is beyond us why Marc said this, and Peter is being a little tough with his remarks. That's Peter.

To be clear, it is impossible for gold to insure systemic, nor does the belief in the other one, insure you absolute entry somewhere forever  over the rainbow.

First Financial Insights

February 27, 2013

Oh My Gosh! Why all the Bugginess over Gold? It does nothing for our real economy, nothing to assure our on-going subsistence and expends currency from the real wealth of the planet. A net negative to planetary wealth.

Marc in this telephone interview is again taking on a senior role at the Pearly Gates, by saying or suggesting two things. Gold is insurance against systemic risk. And investors should hold up to 25% of their portfolio assets in gold. There is no way on earth that he can predict or state this just based on past events. The future is filled with a vast number of permutations, as regards the possibilities and possibilities of outcomes. One is that the price gold collapses more that everything else for any number of reasons. To say gold is some form of insurance against anything is - JUST PLAIN STUPID!

That said,obviously the 25% gold allocation is also not so wise for non-speculative portfolios.

When the crap really hits the fan, folks are going to be thinking more about gas, water, food and medicine. Things get pretty basic.

But let's not get into the prediction game here.

Dr Peter G Kinesa

February 26, 2013

" Peter, Gold Is Insurance Against Systemic Risk!" - GOD

Yesterday we published, commented and provided the link to one pundit's (Eric Sprott) video regarding the price of Gold. Now here's Jimmy, more or less saying "hey guys, this is too good to be true".  We would guess his opinion is a little less biased and closer to the probable outcomes that lie ahead - classic reversion to mean. But it is also remarkable, to see how two leading pundits differ. Such are the markets.

Still, as we said yesterday, even God knows he is not a Gold Pundit. Nor are we.

First Financial Insights

February 26, 2013

You decide?

Chris Martenson of Peak Prosperity interviews Eric Sprott of Sprott Assets. This interview occurs during the recent smash down of gold ...

This is not a asset category that we generally hold an on-going opinion on. First, the idea that gold is the last store of value is a preposterous idea in our "scientific economic modelling" having no relevance whatever to sustaining human existence. Gold's value is thus an abstract construct, and not a concrete construct for purposes of object scientific analysis. John Maynard Keynes also refused to entertain it as have any meaning to real economic activity. Rarely do we ever agree with Keynes - he had his flashes of brilliance. 

It is simply an element extracted from the planet that is a bit more attractive looking than others, so it must logically have more value. This group think " beauty in the eye of the beholder" has a long history. But history will never predict the future, it simple allows for the setting of possibilities and assignment of probabilities.

So we would agree with the Central Bankers who are quietly unloading their inventory,while trying sustain these high price levels for as long as possible. Gold's price, because of its speculative nature, could collapse at any time for whatever reasons - to $1000 or even $500 per ounce. And, not return to these price levels for years. One thing we can guarantee for absolute certain: neither the Central Banks nor Eric Sprott knows for sure. And we know that we certainly do not know. " No one does in reality."

Most importantly,the difference between Gold Pundits and God. God knows he is not a Gold Pundit.

So why have regrets, particularly when there is enough gold above ground for 400 years of industrial production, while oil runs out in about 40 years. Then good luck, in 2055 or 65 in exchanging that ounce (ton) of a pretty metal for a fruits and vegetables basket. 

First Financial Insights
February 25, 2013

How many tons of gold per basket in 2065?
Not even God knows for sure...